By GAGE WILSON
for Glasgow News 1
At its second meeting of the month, the Glasgow City Council agreed to issue $85 million in industrial revenue bonds for Tate Inc., which plans to bring 400 jobs to the former R.R. Donnelley and Sons building.
The cap amount increased by $10 million — from $75 million to $85 million — since the issuance was first introduced at the council’s October meeting.
At that October meeting, council members approved an “Inducement Resolution,” the first step in a two-part process. City Attorney Rich Alexander likened it to “courting” a potential industry as a way to encourage companies to locate in Glasgow.
Alexander explained that the higher bond cap is due to increased equipment costs.
“That increase is primarily driven by additional machinery and equipment for the site, so that is the reason for the requested increase,” he said. “It has zero impact on the city in terms of the bond issuance.”
Glasgow Mayor Henry Royse said the change reflects the company’s commitment to the project.
“This is them [Tate] saying that they want to do this right,” he said. “So they’re going to bond a bit more so they can do it the way they want to do it.”
Councilman Randy Wilkinson expressed some caution about the arrangement.
“I know the city is not indebted, but it’s still the city’s name on the bonds,” he said. “It makes you think a little bit.” He added that he was not opposed to the issuance, but felt it was something to keep in mind.
The resolution approved Thursday –- known as an “Authorizing Resolution” –- allows the bonds to be issued and marks the final step in the process.
Council members largely welcomed the development, noting that Tate will not only bring new job opportunities, but also generate revenue for the city, as the Electric Plant Board and Glasgow Water Company will provide utilities to the facility.
Council members ultimately approved the resolution.
The council’s next regular meeting is scheduled for Feb. 9.
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